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1 Q2 2019 Results August 2nd, 2019
Q2 2019 Results August 2nd, 2019
2 Q2 2019 Results August 2nd, 2019
SAFE HARBOUR STATEMENT
This document, and in particular the section entitled “2019 Guidance” contains forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “continue”, “on track”, “successful”, “grow”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “outlook”, “prospects”, “plan”, “guidance” or similar terms. Forward-looking statements are not guarantees of future performance. Rather, they are based on the Group’s current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in such statements as a result of a variety of factors, including: the Group’s ability to preserve and enhance the value of the Ferrari brand; the success of Ferrari’s Formula 1 racing team and the expenses the Group incurs for Formula 1 activities, as well as the popularity of Formula 1 more broadly; the Group’s ability to keep up with advances in high performance car technology and to make appealing designs for its new models; Group’s ability to preserve its relationship with the automobile collector and enthusiast community; changes in client preferences and automotive trends; changes in the general economic environment, including changes in some of the markets in which we operate, and changes in demand for luxury goods, including high performance luxury cars, which is highly volatile; competition in the luxury performance automobile industry; the Group’s ability to successfully carry out its growth strategy and, particularly, the Group’s ability to grow its presence in emerging market countries; the Group’s low volume strategy; reliance upon a number of key members of executive management, employees, and the ability of its current management team to operate and manage effectively; the performance of the Group’s dealer network on which the Group depend for sales and services; increases in costs, disruptions of supply or shortages of components and raw materials; disruptions at the Group’s manufacturing facilities in Maranello and Modena; the performance of the Group’s licensees for Ferrari-branded products; the Group’s ability to protect its intellectual property rights and to avoid infringing on the intellectual property rights of others; the ability of Maserati, the Group’s engine customer, to sell its planned volume of cars; continued compliance with customs regulations of various jurisdictions; the impact of increasingly stringent fuel economy, emission and safety standards, including the cost of compliance, and any required changes to its products; the challenges and costs of integrating hybrid technology more broadly into Group’s car portfolio over time; product recalls, liability claims and product warranties; the adequacy of its insurance coverage to protect the Group against potential losses; ability to ensure that its employees, agents and representatives comply with applicable law and regulations; ability to maintain the functional and efficient operation of its information technology systems, including our ability to defend from the risk of cyberattacks on our in-vehicle technology; the Group’s ability to service and refinance its debt; the Group’s ability to provide or arrange for adequate access to financing for its dealers and clients, and associated risks; labor relations and collective bargaining agreements; exchange rate fluctuations, interest rate changes, credit risk and other market risks; changes in tax, tariff or fiscal policies and regulatory, political and labor conditions in the jurisdictions in which the Group operates, including possible future bans of combustion engine cars in cities and the potential advent of self-driving technology; potential conflicts of interest due to director and officer overlaps with the Group’s largest shareholders and other factors discussed elsewhere in this document. The Group expressly disclaims and does not assume any liability in connection with any inaccuracies in any of the forward-looking statements in this document or in connection with any use by any third party of such forward-looking statements. Any forward-looking statements contained in this document speak only as of the date of this document and the Company does not undertake any obligation to update or revise publicly forward-looking statements. Further information concerning the Group and its businesses, including factors that could materially affect the Company’s financial results, is included in the Company’s reports and filings with the U.S. Securities and Exchange Commission, the AFM and CONSOB.
3 Q2 2019 Results August 2nd, 2019
H1 2019 RESULTS CONFIRM 2019 GUIDANCE WITH IMPROVED CASH FLOW
Note:(1) Reconciliations to non-GAAP financial measures are provided in the Appendix
Revenues and operating profitability up 8+%. Adjusted diluted EPS(1) of €0.96 (+13.9%) and industrial free cash flow generation(1) of €139 million. Confirming Guidance approaching the high end of the range on all metrics at currently prevailing exchange rates. Increasing industrial free cash flow target. World Premiere of the SF90 Stradale, the new PHEV series-production supercar. Start of deliveries expected in H1 2020. International Engine & Powertrain of the Year award to the Ferrari’s V8 engine. Received the Red Dot: Best of the Best award for the Ferrari Monza SP1. €1.5 billion multi-year share repurchase program on track with the announcement of a second tranche of €200 million in H2 2019 on top of €150 million already executed in H1 2019 Debt maturities profile recently improved and extended through approximately €300 million bond buyback and subsequent US Private Placement issuance, leveraging current interest rate levels
UNVEILING OF FIRST HYBRID
SERIES-PRODUCTION SUPERCAR, SF90 STRADALE
4 Q2 2019 Results August 2nd, 2019 4
5 Q2 2019 Results August 2nd, 2019
290
5 314
Q2 '18
Q2 '19
(100)
(150)(63)
(370)
(353)
Dec. 31, 2018
Jun. 30, 2019
78
139
Q2 '18
Q2 '19
0.84
0.96
Q2 '18
Q2 '19
906
984
Q2 '18
Q2 '19
2,463
2,671
Q2 '18
Q2 '19
Q2 2019 HIGHLIGHTS
Note: (1) Reconciliations to non-GAAP financial measures are provided in the Appendix (2) Refer to notes to the presentation in the Appendix
Results reflect IFRS 16 (simplified approach). Certain totals in the tables included in this document may not add due to rounding
32.0%
31.9%
SHIPMENTS(2)
(UNITS)
Share repurchases
Net Industrial Debt(1) excluding share repurchases
+8.4%
NET REVENUES
(€M)
+8.6%
ADJUSTED EBITDA(1)
(€M and margin %)
+8.7%
INDUSTRIAL FREE CASH FLOW(1)
(€M)
+78.2%
+13.9%
-4.6%
ADJUSTED DILUTED EARNINGS PER SHARE(1)
(€)
NET INDUSTRIAL DEBT(1)
(€M)
Positive impact from IFRS 16 (simplified approach)
Lease liabilities as per IFRS 16 (simplified approach)
6 Q2 2019 Results August 2nd, 2019
Q2 2019 – SHIPMENTS(2)
Note: (2) (3) Refer to notes to the presentation in the Appendix
CONTROLLING GROWTH AMONG GEOGRAPHIES
AMERICAS -5.5% (30% vs. 34% PY) EMEA +11.4%
(45% vs. 44% PY)
REST OF APAC +5.8% (14% vs. 15% PY)
MAINLAND CHINA,
HONG KONG AND
TAIWAN +63.3% (11% vs. 7% PY)
Total shipments increased by 208 units (+8.4% vs.
PY) supported by a 12.3% increase in V8 models
while V12 models decreased by a few units:
Robust deliveries for the Ferrari Portofino and the
812 Superfast
488 family currently lower than prior year due to
the 488 GTB and Spider approaching the end of
lifecycle, partially offset by the 488 Pista in ramp
up phase and the first deliveries of the 488 Pista
Spider, bringing up Special Series
Geographic mix shifted in favor of Mainland
China as a result of the decision to accelerate
client deliveries in advance of the early
introduction of new emission regulations as was
the case in Q1 2019, with lower shipments to the
U.S. reflecting the above mentioned model
phase in/phase out within the 488 family
SHIPMENTS BY REGION(3)
(Q2 2019 vs. Q2 2018)
GT 31% vs. 24%
SPECIAL SERIES
29% vs. 0%
SPORT 40% vs. 76%
ICONA
-% vs. -%
SHIPMENTS BY PILLAR (Q2 2019 vs. Q2 2018)
PILLAR BREAKDOWN
7 Q2 2019 Results August 2nd, 2019
670 670753 766
80 8053 53127 128
130 13129 2932 34
(27)
1 83
2 3 16
Q2 2018 FX hedges Q2
2018
Q2 2018 w/o
FX hedges
Cars and spare
parts
Engines Sponsorship,
commercial
and brand
Other Q2 2019 at
constant
currency 2018
Change in FX
2018 vs. 2019
& FX hedges
Q2 2019
Q2 2019 at
current
currency
Cars and spare parts Engines Sponsorship, commercial and brand Other
906984
(€M)
(4)
(5)
(6)
(7)
+12.4% -34.8% +2.1% +12.0%
968
(8)
907
NET REVENUES BRIDGE Q2 2018-2019
Cars and spare parts: growth reflecting
volume increase of the 488 Pista and
the 488 Pista Spider, the Ferrari
Portofino, the 812 Superfast, partially
offset by the prior year shipments of
LaFerrari Aperta as well as lower sales
of the 488 GTB and the 488 Spider.
Strong positive contribution from
personalization programs along with
deliveries of the FXX K EVO.
Engines: reflecting lower shipments to
Maserati
Sponsorship, commercial and brand:
higher revenues from Formula 1 racing
activities
Currency: net positive impact from
translation, transaction and hedges,
mainly USD
+8.6%, +€78 million at current currency
+6.8%, +€61 million at constant currency(8)
Note: (4) (5) (6) (7) (8) Refer to notes to the presentation in the Appendix
8 Q2 2019 Results August 2nd, 2019
(€M)
Adj. EBITDA Adj. EBITDA at Adj. EBITDA at
Adj. EBITDA w/o FX hedges constant curr. 2018(8) current curr.
290 291 301 314
31.9% 32.1% 31.1% 32.0%
218 226 (16) (6) (2)
217 1
27 5 13 239
Adj. EBIT Q2
2018
FX hedges
Q2 2018
Adj. EBIT Q2
2018 w/o FX
hedges
Vol. Mix / Price Ind. Costs /
R&D
SG&A Other Adj. EBIT Q2
2019 at
constant
currency 2018
Change in FX
2018 vs. 2019
& FX hedges
Q2 2019
Adj. EBIT Q1
2019 at current
currency
Margin
23.9%
Margin
24.3%
Margin
23.3%Margin
24.0%
(8)
ADJ. EBIT BRIDGE Q2 2018 – 2019(1)
Volume reflecting shipments increase
Mix / price performance attributable to the combined impact of improved personalization rate and deliveries of the FXX K EVO, which more than offset product mix.
Industrial costs / R&D increased mainly due to higher operational start up costs due to the introduction of new models as well as higher spending in Formula 1 racing activities
SG&A increased to support the company’s growth
Note: (1) Reconciliations to non-GAAP financial measures are provided in the Appendix.
(8) Refer to notes to the presentation in the Appendix
9 Q2 2019 Results August 2nd, 2019
Industrial Free Cash Flow Change in Net Industrial Debt Industrial Free Cash Flow
(€M) (€M)
∆ vs. Q2 '18 +25 +8 +74 (46) +61 +61 (59) (99) (5)
310
139
Adj. EBITDA
(Industrial
Activities, only)
Q2 2019
∆ in working
capital,
provisions &
other
Cash interest &
Taxes
Capex Industrial FCF
Q2 2019
10
(173)
(8)
(192)
(353)
March 31, 2019
Net Industrial
Debt
Industrial FCF Dividends 2019 Share
repurchases
Currency, other
and IFRS16
June 30, 2019
Net Industrial
Debt
139
(195)
(6)
(99)
INDUSTRIAL FCF(1) AND NET INDUSTRIAL DEBT(1) BRIDGES MAR 31, 2019 – JUN 30, 2019
Note: (1) Reconciliations to non-GAAP financial measures are provided in the Appendix
(9) Refer to notes to the presentation in the Appendix
(10) Including Euro 12 million of quick refund to shareholders due to eligibility for withholding exemption, which will be paid in Q3 2019.
(9)
Residual collection of initial advances on the Ferrari Monza SP1 and SP2 more than offsetting slightly negative change in working capital
Positive cash impact from the Patent Box benefit
Capital expenditures pace accelerating towards 2019 guidance
(10)
10 Q2 2019 Results August 2nd, 2019
CONFIRMING GUIDANCE APPROACHING THE HIGH END OF THE RANGE ON ALL METRICS AT CURRENTLY PREVAILING EXCHANGE RATES.
INCREASING INDUSTRIAL FCF TARGET
Note: (11) Calculated using the weighted average diluted number of shares for 2018
(€B, unless otherwise stated) 2018A 2019E
NET REVENUES 3.4 >3.5
1.1 1.2-1.2532.6% ~34%
0.825 0.85-0.924.1% ~24.5%
ADJ. DILUTED EPS(11)
(€) 3.40 3.50-3.70
IND. FCF 0.4 >0.55
ADJ. EBIT (margin %)
ADJ. EBITDA (margin %)
11 Q2 2019 Results August 2nd, 2019
APPENDIX
12 Q2 2019 Results August 2nd, 2019
NOTES TO THE PRESENTATION 1. Reconciliations to non-GAAP financial measures are provided in the
Appendix
2. Excluding the XX Programme, racing cars, Fuori Serie, one-off and pre-
owned cars
3. Shipments geographical breakdown
EMEA includes: Italy, UK, Germany, Switzerland, France, Middle East
(includes the United Arab Emirates, Saudi Arabia, Bahrain, Lebanon,
Qatar, Oman and Kuwait) and Rest of EMEA (includes Africa and the
other European markets not separately identified);
Americas includes: United States of America, Canada, Mexico, the
Caribbean and Central and South America;
Rest of APAC mainly includes: Japan, Australia, Singapore, Indonesia,
South Korea, Thailand and Malaysia
4. Includes the net revenues generated from shipments of our cars,
including any personalization revenue generated on these cars and
sales of spare parts
5. Includes the net revenues generated from the sale of engines to
Maserati and the revenues generated from the rental of engines to other
Formula 1 racing teams
6. Includes the net revenues earned by our Formula 1 racing team through
sponsorship agreements and our share of the Formula 1 World
Championship commercial revenues and net revenues generated
through the Ferrari brand, including merchandising, licensing
and royalty income
7. Primarily includes the interest income generated by our financial
services activities and the net revenues from the management of the
Mugello racetrack
8. The constant currency presentation eliminates the effects of changes in
foreign currency (transaction and translation) and of foreign currency
hedges
9. Net Industrial Debt redefined as Net Debt less Net Debt of Financial
Services Activities
10. Including Euro 12 million of quick refund to shareholders due to
eligibility for withholding exemption.
11. Calculated using the weighted average diluted number of shares for
2018
13 Q2 2019 Results August 2nd, 2019
STRONG TRACK-RECORD IN NEW MODELS INTRODUCTION Range models introduced or announced
Model / Year of delivery 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
SPORT RANGE
F430
F430 Spider
599 GTB Fiorano
458 Italia
458 Spider
F12berlinetta
488 GTB
488 Spider
812 Superfast
F8 Tributo
SF90 Stradale
GRAN TURISMO RANGE
612 Scaglietti
California
FF
California 30
California T
GTC4Lusso
GTC4Lusso T
Portofino
14 Q2 2019 Results August 2nd, 2019
Model / Year of delivery 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
SPECIAL SERIES
Superamerica
F430 Scuderia
Scuderia Spider 16M
599 GTO
SA APERTA
458 Speciale
458 Speciale A
F12tdf
488 Pista
488 Pista Spider
ICONA
Ferrari Monza SP1
Ferrari Monza SP2
Model / Year of delivery 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
HYPERCAR
LaFerrari
LaFerrari Aperta
TRACK CARS
FXX K(12)
FXX K EVO(12)
FUORISERIE
F60 America(12)
J50(12)
STRONG TRACK-RECORD IN NEW MODELS INTRODUCTION Special and Limited edition models introduced or announced
Note: (12) Models not included in the total shipments’ figure provided
15 Q2 2019 Results August 2nd, 2019
1,073 1,195
850 803
177
289
363
384 2,463
2,671
Q2 2018 Q2 2019
GROUP SHIPMENTS BY REGION(2)(3)
Note: (2) (3) Refer to notes to the presentation in the Appendix
Graphs not to scale.
+8.4%
Americas EMEA Mainland China, Hong Kong and Taiwan Rest of APAC
+122
+11.4%
(47)
(5.5%)
+112
+63.3%
+21
+5.8%
2,176 2,404
1,419
1,523
360
617 636
737 4,591
5,281
H1 2018 H1 2019
+15.0%
+228
+10.5%
+104
+7.3%
+257
+71.4%
+101
+15.9%
16 Q2 2019 Results August 2nd, 2019
GROUP SHIPMENTS BY PILLAR(2)
Note: (2) Refer to notes to the presentation in the Appendix
Graphs not to scale.
24% 31%
76%
40%
0%
29%
-% -%
Q2 2018 Q2 2019
20%
34%
79% 42%
1%
24%
-% -%
H1 2018 H1 2019
Sport GT Special Series Icona
17 Q2 2019 Results August 2nd, 2019
700500
104284
217
100
23
59
2163286
917
100
523
2019 2020 2021 2022 2023
Bond US Securitizations Other Financial Liabilities
(1,167)
(353)
(814)
June 30, 2019
Net Industrial Debt
Net Debt of Financial
Services Activities
June 30, 2019
Net Debt
At Jun. 30 At Mar. 31
(€M) 2019 2019 2018 2017 2016
Debt (2,048) (2,064) (1,927) (1,806) (1,848)
Cash & Cash Equivalents (A) 881 1,062 794 648 458
Net Debt (1,167) (1,002) (1,133) (1,158) (1,390)
Net Debt of Financial Services Activities (814) (810) (763) (650) (700)
Net Industrial Debt (353) (192) (370) (508) (690)
Undrawn Committed Credit Lines (B) 500 500 500 500 500
Total Available Liquidity (A+B) 1,381 1,562 1,294 1,148 958
At Dec. 31
DEBT AND LIQUIDITY POSITION
Net Industrial Debt (€M)
(*) Not yet reflecting the Euro 315 million bond repurchase executed on July 12, 2019 and the Euro 300 million USPP (“US Private Placement”) announced on July 31, 2019.
Not including lease liabilities as per IFRS 16 (simplified approach)
Certain totals in the tables included in this document may not add due to rounding
Gross Debt Maturity Profile(*) (€M) Cash and Marketable Securities (€M)
Net Industrial Debt (€M)
Jun. 30 Mar. 31
(€M) 2019 2019 FY 2018 FY 2017 FY 2016
Euro 660 806 616 435 318
Chinese Yuan 93 88 73 62 58
US Dollar 87 133 50 88 16
Japanese Yen 4 6 24 26 37
Other Currencies 37 29 31 37 29
Total (€ equivalent) 881 1,062 794 648 458
18 Q2 2019 Results August 2nd, 2019
CAPEX AND R&D
Note: (13) Capitalized as intangible assets
Q2 '19 Q2 '18 €M H1 '19 H1 '18
173 128 Capital expenditures 308 249
86 72 of which capitalized development costs (13) (A) 151 129
140 136 Research and development
costs expensed (B)294 285
226 208 Total research and development (A+B) 445 414
30 30 Amortization of capitalized
development costs (C)61 54
170 166 Research and development costs as recognized
in the consolidated income statement (B+C)355 339
Certain totals in the tables included in this document may not add due to rounding
19 Q2 2019 Results August 2nd, 2019
non-GAAP FINANCIAL MEASURES
Operations are monitored through the use of various non-GAAP
financial measures that may not be comparable to other similarly
titled measures of other companies.
Accordingly, investors and analysts should exercise appropriate
caution in comparing these supplemental financial measures to
similarly titled financial measures reported by other companies.
We believe that these supplemental financial measures provide
comparable measures of our financial performance which then
facilitate management’s ability to identify operational trends, as well
as make decisions regarding future spending, resource allocations
and other operational decisions.
Reconciliations are only provided to the most directly comparable
IFRS financial statement line item for Adjusted EBITDA, Adjusted EBIT
and Adjusted EPS diluted for historical periods, as the income or
expense excluded from these non-GAAP financial measures in
accordance with our policy are, by definition, not predictable and
uncertain.
Total Net Revenues, EBITDA, adj. EBITDA, EBIT and adj. EBIT at constant currency eliminate
the effects of changes in foreign currency (transaction and translation) and of foreign
currency hedges.
EBITDA is defined as net profit before income tax expense, net financial expenses and
depreciation and amortization. Adjusted EBITDA is defined as EBITDA as adjusted for
certain income and costs which are significant in nature, expected to occur infrequently,
and that management considers not reflective of ongoing operational activities.
Adjusted Earnings Before Interest and Taxes (“Adjusted EBIT”) represents EBIT as adjusted
for certain income and costs which are significant in nature, expected to occur
infrequently, and that management considers not reflective of ongoing operational
activities.
Adjusted net profit represents net profit as adjusted for certain income and costs (net of
tax effect) which are significant in nature, expected to occur infrequently, and that
management considers not reflective of ongoing operational activities.
Adjusted earnings per share diluted represents earnings per share as adjusted for certain
income and costs (net of tax effect) which are significant in nature, expected to occur
infrequently, and that management considers not reflective of ongoing operational
activities.
Net Industrial Debt is defined as total Debt less Cash and cash equivalents (Net Debt),
further adjusted to exclude the debt and cash and cash equivalents related to our financial
services activities (Net Debt of Financial Services Activities).
Free Cash Flow is defined as cash flows from operating activities less investments in
property, plant and equipment and intangible assets. Free Cash Flow from Industrial
Activities is defined as Free Cash Flow adjusted to exclude the operating cash flow from
our financial services activities (Free Cash Flow from Financial Services Activities).
non-GAAP financial measures
20 Q2 2019 Results August 2nd, 2019
Q2 '19 Q2 '18 €M, unless otherwise stated H1 '19 H1 '18
984 906 Net revenues 1,924 1,737
314 291 EBITDA 625 563
- (1) Adjustments - (1)
314 290 Adjusted EBITDA 625 562
310 285 of which Adj. EBITDA (Industrial Activities, only) 618 553
75 73 Amortization and depreciation 154 135
239 218 EBIT 471 428
239 217 Adjusted EBIT 471 427
9 5 Net financial expenses 16 9
230 213 Profit before taxes 455 419
46 53 Income tax expense / (benefit) 91 110
20.0% 25.0% Effective tax rate 20.0% 26.4%
184 160 Net profit 364 309
- (1) Adjustments - (1)
184 159 Adjusted net profit 364 308
0.97 0.85 Basic EPS (€) 1.92 1.63
0.96 0.85 Diluted EPS (€) 1.91 1.62
0.97 0.84 Adjusted Basic EPS (€) 1.92 1.63
0.96 0.84 Adjusted Diluted EPS (€) 1.91 1.62
Certain totals in the tables included in this document may not add due to rounding.
KEY PERFORMANCE METRICS AND RECONCILIATIONS OF non-GAAP MEASURES
21 Q2 2019 Results August 2nd, 2019
Q2 '19 Q2 '19 H1 '19 H1 '19
at current currency at constant currency at current currency at constant currency
766 753 Cars and spare parts 1,501 1,471
53 53 Engines 111 111
131 130 Sponsorship, commercial and brand 259 254
34 32 Other 53 50
984 968 Total Net Revenues 1,924 1,886
Certain totals in the tables included in this document may not add due to rounding
€M
RECONCILIATIONS OF non-GAAP MEASURES: TOTAL NET REVENUES
AT CONSTANT AND CURRENT CURRENCY(8)
Note: (8) The constant currency presentation eliminates the effects of changes in foreign currency (transaction and translation) and of foreign currency hedges
22 Q2 2019 Results August 2nd, 2019
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EBIT
Q2 '19 Q2 '18 €M H1 '19 H1 '18
239 218 EBIT 471 428
- (1)Release of charges related to Takata
airbag inflator recalls- (1)
239 217 Adjusted EBIT 471 427
Certain totals in the tables included in this document may not add due to rounding
23 Q2 2019 Results August 2nd, 2019
Q2 '19 Q2 '18 €M H1 '19 H1 '18
314 291 EBITDA 625 563
- (1)Release of charges related to Takata
airbag inflator recalls- (1)
314 290 Adjusted EBITDA 625 562
Certain totals in the tables included in this document may not add due to rounding
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EBITDA
24 Q2 2019 Results August 2nd, 2019
Q2 '19 Q2 '18 €M H1 '19 H1 '18
184 160 Net profit 364 309
- (1)Release of charges related to Takata
airbag inflator recalls (net of tax effect)- (1)
184 159 Adjusted net profit 364 308
Certain totals in the tables included in this document may not add due to rounding
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED NET PROFIT
25 Q2 2019 Results August 2nd, 2019
BASIC AND DILUTED EPS
Q2 '19 Q2 '18 €M (unless otherwise stated) H1 '19 H1 '18
183 160 Net profit attributable to owners
of the Company361 308
187,409 188,646 Weighted average number of common
shares (thousand)187,544 188,745
0.97 0.85 Basic EPS (€) 1.92 1.63
188,207 189,451
Weighted average number of common
shares for diluted earnings per common
share (thousand)
188,342 189,551
0.96 0.85 Diluted EPS (€) 1.91 1.62
Certain totals in the tables included in this document may not add due to rounding
Note: For the three and six months ended June 30, 2019 and 2018 the weighted average number of shares for diluted earnings per share was increased to take into consideration the theoretical effect
of the potential common shares that would be issued under the Company’s equity incentive plans (assuming 100 percent of the related awards vested).
26 Q2 2019 Results August 2nd, 2019
Q2 '19 Q2 '18 € per common share H1 '19 H1 '18
0.97 0.85 Basic EPS 1.92 1.63
- (0.01)Release of charges related to Takata
airbag inflator recalls (net of tax effect)- (0.01)
0.97 0.84 Adjusted EPS 1.92 1.63
0.96 0.85 Diluted EPS 1.91 1.62
- (0.01)Release of charges related to Takata
airbag inflator recalls (net of tax effect)- (0.01)
0.96 0.84 Adjusted diluted EPS 1.91 1.62
Certain totals in the tables included in this document may not add due to rounding
RECONCILIATIONS OF non-GAAP MEASURES: ADJUSTED EPS
27 Q2 2019 Results August 2nd, 2019
Q2 '19 Q2 '18 €M H1 '19 H1 '18
299 176 Cash flow from operating activities 683 386
(173) (128)Investments in property, plant and
equipment and intangible assets(308) (249)
126 48 Free Cash Flow 375 137
(13) (30)Free Cash Flow from Financial Services
Activities(46) (32)
139 78 Free Cash Flow from Industrial
Activities(14) 421 169
Certain totals in the tables included in this document may not add due to rounding
RECONCILIATIONS OF non-GAAP MEASURES: FREE CASH FLOW AND FREE CASH FLOW
FROM INDUSTRIAL ACTIVITIES
Note:
(14) Free cash flow from industrial activities for the three and six months ended June 30, 2019 includes Euro 12 million of quick refund to shareholders due to eligibility for withholding exemption, which will be paid in Q3 2019.
Free cash flow from industrial activities for the three and six months ended June 30, 2018 includes Euro 5 million of quick refund to shareholders due to eligibility for withholding exemption, which was paid in Q3 2018.
28 Q2 2019 Results August 2nd, 2019
€M June 30, 2019 March 31, 2019 December 31, 2018
Debt (2,048) (2,064) (1,927)
of which: Lease liabilities as per IFRS 16
(simplified approach)63 63 -
Cash and cash equivalents 881 1,062 794
Net Debt (1,167) (1,002) (1,133)
Net Debt of Financial Services Activities (814) (810) (763)
Net Industrial Debt (353) (192) (370)
Certain totals in the tables included in this document may not add due to rounding
RECONCILIATIONS OF non-GAAP MEASURES: NET INDUSTRIAL DEBT